It’s no secret that predatory lending is one of the largest contributing factors to a cycle of debt for some consumers. They often feel too embarrassed about their credit scores, lack of financial solvency, and other issues which lead them to turn to the traps of payday lenders. This week the Alabama House Financial Services Committee is scheduled to hear legislation to help consumers avoid being caught in this cycle of debt.
If SB 91, sponsored by Sen. Arthur Orr (R-Decatur), is passed, it would regulate the fees a payday lender could charge, reduces the interest rate on these loans, and regulates the number of these loans a consumer can take out. While not a perfect fix to the issue of predatory lending, this type of legislation is long overdue in Alabama.
Look for an Action Alert from the League on this issue on Tuesday. If you have any questions about this legislation, contact LSCU Sr. Director of Governmental Affairs in Alabama Jason Cochran at 866.231.0545 ext. 2159.